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Three Tips to Reduce Your Closing Cost When Buying a New Home

closing cost1Late spring and early summer are usually a busy time of the year of the year for home buying. With the nice weather many people begin to shop for a new, and for families with children it is the perfect time to move with the children out of school for the summer.

There are a lot of cost associated with home buying besides the mortgage itself. Closing cost fees are a part of the home buying process that are due at the time the new mortgage is finalized. With the help of a good mortgage professional buyers can negotiate the closing cost and reduce this expense with a little bit of effort. Here are a few tips that may help.closing cost3

Lender Shopping
On processing your mortgage every lender has set amount of fees that are associated in processing the mortgage, and these fees vary with each lender.These fees are listed on the Good Faith Estimate that a lender provides to their loan officer. It may not be possible to compare these fees line for line, since every lender uses their own terminology for the same type of fee. What you can do is take a look at the overall cost that is associated in processing your loan and use the totals between them to base your comparisons.

Third Party Fees
closing cost2
There will be third party vendors that some of the closing cost fees will be associated to. These are vendors that perform services such as home appraisals, title searches, and cost of obtaining credit reports to name a few. Since the lender uses specific companies to perform these services, it may be a little harder for you to negotiate these fees. It does not hurt for you ask to you use your own appraiser or title search company if you can get a better rate.
Mortgages with Zero Closing Costclosing cost4
You may want to inquire about a no closing cost mortgage, this type of mortgage eliminates all closing cost. On this type of mortgage the lender will cover all closing cost fees in exchange the lender will get a higher
interest rate on the loan. Most of the time the interest rate increase is around one-quarter of a percent. Using this type of a loan can be very helpful to buyers, it frees up money saved at closing for other things like moving expenses.

moo thorpe headshotWhether you are selling your home, or buying a home, I can help you with your endeavor. Please contact me at 505.780.0310, or email me at moo@moothorpe.com and I will be happy to assist you.


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